Why Does Discover Ask for IRS Verification?
Discover, one of the leading credit card issuers in the United States, is committed to ensuring the security and reliability of its services. As part of their rigorous verification process, Discover may ask for IRS verification from certain applicants. This additional step aims to prevent identity theft, fraud, and to comply with federal regulations. By requesting IRS verification, Discover can confirm the applicant’s identity, income, and financial stability, which helps them make informed decisions regarding creditworthiness.
IRS verification involves accessing an applicant’s tax return information directly from the Internal Revenue Service (IRS). Discover’s partnership with the IRS enables them to validate the accuracy of the information provided by the applicant on their credit card application. This verification process is not unique to Discover; other financial institutions may also rely on IRS verification to ensure the authenticity of the information provided by their customers.
Here are 8 frequently asked questions (FAQs) and answers about Discover’s IRS verification process:
1. Why does Discover need to verify my income?
Discover may ask for income verification to assess your ability to repay credit card debt. By confirming your income, they can determine whether you meet the minimum income requirements for the credit card you have applied for.
2. How does IRS verification work?
Discover, with the applicant’s consent, accesses the IRS database to retrieve tax return information directly from the source. This allows them to verify the applicant’s income and other financial details.
3. Will my credit score be affected by Discover’s IRS verification?
No, the IRS verification process does not impact your credit score. It is simply a method for Discover to verify the information you provided on your application.
4. Is Discover the only credit card issuer that asks for IRS verification?
No, other credit card issuers may also request IRS verification as part of their application process. This is a common practice in the financial industry to ensure accurate and reliable information.
5. What information will Discover verify with the IRS?
Discover primarily verifies income, filing status, and other financial details that are relevant to the credit card application. They do not have access to personal details such as bank account numbers or social security numbers.
6. How long does the IRS verification process take?
The duration of the IRS verification process varies. In most cases, it takes a few business days to complete. However, it may take longer if there are any discrepancies or delays in accessing the IRS database.
7. What happens if the information provided on my application doesn’t match IRS records?
If there are discrepancies between the information you provided and IRS records, Discover may request additional documentation or clarification. It is essential to ensure the accuracy of the information you provide to avoid delays in the application process.
8. Is IRS verification mandatory for all Discover applicants?
No, not all applicants are required to go through IRS verification. Discover determines which applicants are subject to this process based on their internal criteria. The majority of applicants do not need to provide IRS verification.
In conclusion, Discover’s request for IRS verification is a crucial step in their application process to ensure the accuracy and reliability of the information provided by applicants. By verifying income and other financial details, Discover strives to make informed decisions regarding creditworthiness and protect both themselves and their customers from potential fraud.